parent company

Parent Company

A company that controls other companies by owning an influential amount of voting stock.

Notes:

Companies can become parent companies by many different means. The two most common ways are through (1) acquisitions of smaller companies and (2) the spin-off or creation of subsidiaries.

See also: Callable Common Stock, Carve-Out, Spin-off, Subsidiary

---

Parent company

A company that controls subsidiaries through its ownership of voting stock, as well as runs its own business.

---

parent company

A company that controls or owns another company or other companies. For example, Union Pacific Corporation is the parent company of the trucking firm Overnite Transportation Company. Compare subsidiary. See also holding company.